Which of the following is a DCF approach?

Question

Quizplus · Accepted Answer

The DCF (discounted cash flow) approach involves calculating the present value of expected cash flows generated by an investment. The methods used in DCF analysis include net present value (NPV), internal rate of return (IRR), and profitability index, all of which are listed in choices I, II, and III. The payback period, listed in choice IV, is not part of the DCF approach. Therefore, the best choice is C, which includes all three DCF methods and excludes the non-DCF method.

Which of the Following Is a DCF Approach